PARTIAL UNEMPLOYMENT . COMPENSATION BENEFITS .

A Report

of the

JOINT STATE GOVERNMENT COMMISSION to th,e

GENERAL ASSEMBLY of the

COMMONWEALTH OF PENNSYLVANIA "

SESSION OF

1951

The Joint State Government Commission was created by Act of 1937, July 1, P. L. 2460, as amended 1939, June 26, P. L. 1084; 1943, March 8, P. L. 13, as a continuing agency for the development of facts a1).d recommendations on all phases of government for the use of the General Assembly.

ii

JOINT STATE GOVERNMENT COMMISSION

Honorable BAKER ROYER,

Chairman

M. WALKER, Vice Chairman Honorable W. STUART HELM, Secretary-Treasurer Honorable JOHN

Senate Members

HOllse Members

JOSEPH M. BARR

HIRAM G. ANDREWS

LEROY E. CHAPMAN

ADAM T. BOWER

JOHN H. DENT G. GRAYBILL DIEHM

HOMER S. BROWN

t

C.

ANTHONY J. DISILVESTRO

EDWIN

JAMES A. GELTZ

W. STUART HELM

FREDERICK

1.

HOMSHER

*

CHARLE~ H. BRUNNER, JR.

*

EWING

EARL E. HEWITT, SR.

A. EVANS KEPHART

THOMAS H. LEE

JOHNG. SNOWDEN

JAMES E. LOVETT

O. J. TALLMAN

ALBERT S. READINGER

M. HARVEY TAYLOR

BAKER ROYER

PAUL

1.

WAGNER

CHARLES

JOHN

M. WALKER

IIERBERT IVAN.

T. NEWELL WOOD

C.

§

C. SMITH p.. SORG

WATKINS

Counsel and Director PAUL H. WUELLER, Associate Director in Charge of Research and Statistics ANTOINETTE S. GIDDINGS, Administrative Assistant

GUY W. DAVIS,

* Deceased.

t Appointed to fill the vacancy created by the death of Frederick

L.

Hamsher. :j: Resigned. § Appointed to fill .the vacancy c,reated by the resignation of Homer S. Brown.

iii

.r-.-

J OINT

STATE GOVERNMENT COMMISSION

SUBCOMMITTEE ON PARTIAL UNEMPLOYMENT COMPENSATION J;3ENEFITS

Honorable ROBERT F. KENT, Chairman Honorable FRASER P. DONLAN, Vice Chairman Senate· Members FRASER JAMES

P. A.

House Members

E.

DONLAN

LEWIS

GELTZ

ROBERT

EVANS

F.

KENT

WILMER W. WATERHOUSE

JOSEPH J. YOSKO

iv

LETTER OF TRANSMITTAL

To the Members of' the General Assembly of the Commonwealth of Pennsylvania:.

Herewith' is submitted a report on partial unemployment compensation benefits, ,the study of which was directed by House ,Concurrent Resolution Serial No. '87, of the 1949 Session of the General Assembly. To assist in the study, a subcommittee was appointed by the Commission in accordance with Act of 1943, March 8, P. L. 13-, Section 1. The cooperation of the members of the subcommittee is gratefully acknowledged. The Com-mission has ex:amin~d unemployment comp,ensation statutes of the forty-eight states; made an in1tensive study of partial benefits payabl~ under different employment conditions in sixteen sltates, including Pennsylvania, and analyzed the disttribution of perso~s eligible for benefits in Pennsylvania by high quarterly earnings during the base year. The Commission conferred with state-wide organizations ~epresenting both employers and organized la'bo! concerning partial unemployment compensation benefits. BAKER ROYER,

Joint State Governm-ent Commissi~n Capitol Building Harrisburg, Pennsylvania

v

Chairman.

CONTENTS I

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Page

.1.................. I

SUMMARY OF FINDINGS

1

I

SECTION

I. INTRODUCTION ..

J• • • • • • • • • • • •• • • • • •

5

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SECTION II. PENNSYLVANIA: ~asic Statutory Provisions Regarding I Unemployment Com• ~I . pensatl0n

9

I

SECTION III. A COMPARISON OF PARTIAL UNEMPLOYI ' MENT BENEFIT~ AND PROCEDURES IN SIXTEEN SELECl1ED STATES

31

I

I I I

LIST OF TABLES I

i

Table I. Benefit Payments, Dollar Amount of Benefit Payments, and ,Average Ben~fi:t Payments for the Years 1946 to 1949, Inclusive,! ,and for the first Half of the Year 1950 \ j

• • • • • • • • • • • • •'.

•

•

•

•

•

15

I

Table II. Percentage Distributihn of Number of Par,I "" tial Unemployment Compens~tion Benefit Payments to Men and Women on a Modthly Basis During 1949 and the First Half of 1950 . 1.... '.' . . . . . . .. . . . . . ,

17

Table III. Percentage Distribu¥on of Number of Partial Unemployment Compens!ation Benefit Payments in Three-Month Periods f-rom Janua,ry Through March, 1949, ItO April Through June, 1950, in Major Industry Groups

19

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Page Ta:ble IV. Percentage Distribution of Number of Partial 'Unemployment Compensation Benefit Payments to Men in Three-Month ~eriods from January Through March, 1949, to Aprii Through June, 1950, 20 in Major Industry Groups Table V. Percentage Distribution of Number of Partial Unemployment Compensation Benefit Payments to Women in Three-Month Periods from January Through March, 1949, to April Through June, 1950, in Major Industry Groups

21

Table VI. Distribution for Major Industry Groups and for Selected Individual Industries of Average Number of Employes Covered Under the Pennsylvania Unemployment Compensation Law, Number of Employes Receiving Partial Unemployment Compensation Benefits, Number ofPa1itial Unemployment Compensation Benefit Payments, Number of Employes Receiving Partial Benefits as a Per Cent of Employment, and Number of Partial Payments Per Partially Unemployed Worker During the Calendar Year 1949 -. . . . . . ..

23

Table VII. Percentage Distributions for Major Indus-\ Itry -Groups and for Selected Industries of the Number of Partial Unemployment Compensation Benefit Weekly Payments by the Dollar Amounts of Payments During the Second Half of the Calendar Year 1949 for Perso1)s ,Filing Claims Under the Benefit Provisions of the Act of 1949, May 14, P. L. 1355 27 vii

Page Table VIII. P,ercentage Distributions of Number of Partial, UnenIploymenlt Compensation Benefit Payments by Estimated W·eekly Earnings and by Both Average 'X1eekly Wage During iHighest Quarter of Base Period :and Weekly Benefit Amount for Total Unemployment for Persons W,hose Claims Were Filed Between July, 1949, and ~un(:, 1950, Inclusive, Under the Act of 1949, May 14, P. L. 1355

29

Table IX. Wage Requirements, +vIethods of Computing Weekly Benefits and Spread of W'eekly Benefits in Sixteel1 Selected States ..... '. . . . . . . . . . . . . . . . ..

32

Ta'ble X. Principal Pr-ovisions for Partial Unemployment Ben'efits in Selected States

35

Table XI. Weekly Partial Unemploylnen t Benefits and Total Benefit A'mount of a Worker Earning. $12 Daily, with $800 in High Quarter Earnings and $3,000 in Base Year Earnings, in Sixteen Selected States

39

Table XII. Weekly Partial Unemployment Benefits, and Total Benefit Amount of a Worker Earning $8 Daily, with $525 in High Quarter Earnings, and $1,850 in Base Year Earnings, in Sixteen Selected States. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

40

Ta:ble XIII. Weekly Raltes of Partial Benefits at Selected Earning Levels as Calculated for Sixteen Selected States, Weekly Benefit R3Jtes, at Selected Levels with Given Assumptions of Earnings and of Days of Employment Per Week. . . . . . . . . . . . . . . . . . . . . . . . . ..

41

1

viii

APPENDICES Page Appendix A-Basic Data , .. 46 Appendix Table 1. Number of Weeks Compensated and Total Dollar Amount of All Unemployment Compensation Benefits and Number of Weeks Compensated and Total Dollar Amount of Patitial and Part-total Unemployment Compensation Benefits on a Monthly Basis from January, 1949, to June, 1950, Inclusive . . . . . . . . . . . . . . . .. 46 Appendix B-Sample Data . . . . . . . . . . . . . . . . . . . . . .. 49 Appendix Table 2. Percentage Distribution of Number of Partial Unemployment Compensation Benefit Payments During the Second Half of the Calendar Year 1949 by Dollar Amount of Payments and by Major Industry Groups and Selected Industries for Men Filing Claims in Benefit Years Established Under the Provisions of the Act of 1949, May 14, P. L. 1355 50 Appendix Table 3. Percentage Distribution of Number of Partial 'Unemployment Compensation Benefit Payments During the Second Half of the Calendar Year 1949 by Dollar Amount of Payments and by Major Industry Groups and Selected Industries for Women Filing Claims in Benefit Years Established Under the Provisions of the Act of 1949, May 14, P. L. 1355 52 Appendix Table 4. Percentage Distributions of Number of Partial Unemployment Compensation Benefit Payments in Manufacturing Industries by Estimated Weekly Earnings and by Both Approximate Customary Weekly Wage and Weekly Benefit Amount for Total Unemploymep,t fQr Pef~O!l§ i:x;

Page Whose Claims Were Filed Between July, 1949, and June, 1950, Inclusive, Under the Act of 1949, May 14, P. L. 1355 ~

53

Appendix Table 5. Percentage Distributions of Number of Partial Unemployment Compensation Benefilt Payments in the Wholesale and Retail Trade Industries by Estimated Weekly Earnings and by Both Approximate Customary Weekly Wage and Weekly Benefit Amount for Total Unemployment for Persons Whose Claims Were Filed Between July, 1949, and June,: 1950, Inclusive, Under the Act of 1949, May 14"P. L. 1355 .....

55

Appendix Table 6. Percentage, Distributions of Number of Partial Unemployment Compensation Benefit Payments in ithe Textile Mill Products Industry by Estima:ted Weekly Earpings and by Both Approximate Customary Weekly Wage and Weekly Benefit Amount for Total l)nemployment for Persons Whose Claims Were Filed Between July, 1949, and June, 1950, Inclusive, Under the Act of ,1949, May 14, P. L. 1355 .... '. . . . . . . . . . . . . . ..

57

Appendix Table 7. Percentage i Distributions of Number of Partial Unemployment -Compensation Benefit Payments in the Appar~l and O:ther Finery Products Industry by Estimated Weekly Earnings and by Both Approximate Customary Weekly Wage and Weekly Benefit Amount for Total Unemployment for Persons Whose Claims Were Filed Between July, 1949, 'and June, 1950, Inclusive, Under the Act of 1949, May 14, P. L. 13·55

59

x

SUMMAay OF FINDINGS I. The forty-eight states of the union have unemployment compensation laws. The Pennsyhrania unemployment compensation system was esta;blished in 1936. The Pennsylvania system at the time of its establishment provided for benefit payments only if a worker was fully unemployed; in 1945, the statute was amended to provide for benefit payments to partially unemployed persons. II. In Pennsylvania, a covered employe is, compensated for total or partial up-employment ~s follows: The statute establishes a minimum· weekly henefit of $8, to.which a wage earner is 'enHtled who~e high quarterly earnings during his· base year .(the first four of the latest five calendar quarters preceding 'the d(l)te of application for benefits) ranged from $60 to $212. The henefit payment increases by $1 for every. $25 of.high-quarterly base year earnings exce'eding $212 until it reaches a maximum·of $25 per week at a high-quarterly earning of $613 or more. In order to be eligible for benefits for either full or partial unemployment, a covered worker must have received remuneration during his base' year in'an amount not less than thirty times his weekly benefit rate. The maximum' benefit payments for anyone benefit year are twenty.;four times the full weekly benefit , rate to which he is entitled. ' In the case of a fully unemployed person whose eligibility has been established, the full benefit rate is payable. In the case of a partially unemployed person, an incentiv,e deduction of $3 is made from his weekly earnings, and the balance of his earnings is deducted from his full benefit rate. In order ,to be eligible for benefits for partial unemployment, a worker must earn less than his full weekly benefit amount. 1

i

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i III. It is· the ·purpose of unemployment compensation systems to make available to a fully olr partially unemployed covered worker some statutorily-detetmined fraction of the incon1e which he would have earned ~n the covered employI ' ment had he been fully employed. i J

I I

IV. ,To accomplish the objective lindicated under (III), above, two systems are in lls~the -soicalled ttwage-Ioss" type of p·rogram and the Hday-base" plant '1

" system 1S .: V. . Th e tt wage-Ioss us~'d by f arty-seven states including Pennsylvania; the Hday-ba~e" plan is used only in the State of New York. It is possible to incorporate, within I the frarhewotk of either system, a fe~ture providing for supplemental allowances far dependentk,. and some states have incorporated su~h a feature. I i

VI~

Under the (Cday-·base" plan I (used in New York), benefit rates are computed in basidlly the same manner as those under :the "wage-Ioss~' system I< used in Pennsylvania). . However, the payments ar,e computed· in a different manner. For purposes of'computing the pay~ents, the day~base plan, recognizes a seven-day week.) Prov~deda worker earns less than $24 from h,is employment durfng the week, the .fourth and succeeding days of un,employment in t!tat week are I designated as c',effective days." Four effective days are conI . sidered as a week of full unemployment and the full benefit amount is paid to any covered pe~s~n who has accumulated I, four effective days. ,

I

, VII. Examination of the two' -systems, described· under II and. VI, above, shows that in both, amounts paid for partial unemployment depend up~n amounts paid for full .! unemployment. j

2

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I I

VIII. The day-base pIan, in use only in the State of New York, has recently been evaluated by a legislative cOtTIInittee at the direction of the New York General Assetnbly. This committee has recommended abandonment of the daybase plan.

IX. Generally speaking, evidence shows that the wageloss system provides more generous benefits for covered employes in the lower earning brackets.

x.

The payment of partial unemployment compensation benefits in Pennsylvania began in the week ending January 1, 1946. As of the first half of the year 1950, partial un·employment compensation benefits were 4.70 per- cent of the total number of all benefit payments and were 2.71 per cent of the total dollar amount of all benefit payments. The average payment for partial unemployment during the first half of 1950 was $11.85.

XI. Data on a monthly basis for the time period January, 1949, to June, 1950, show that women usually receive a greater number of benefit payments for partial unemployment than do men. The number of paYlnents to women ranged from 43.92% to 78.670;0 of the total number of payments while the number of payments to men ranged from 21.33% to 56.08ro of total payments.

XII. Of the major industry groups, th·e highest number of partial unemployment compensation benefit payments between January, 1949, and June, 1950, come under the manufacturing category with the second highest number in the wholesale and retail trade category. 3

XIII. During the calendar year 1949, the number of persons receiving partial unemployn1ent compensation benaverage nun1ber of covered efit payments as a percentage employes was highest in lthe nlanufacturing group of industries (6.1870); this group was heavily weighted by the apparel and other finery products industry for which the percentage was 22.67, and- by the textile mill products in·dustry for "rhich the percentage was 11.11. The major industry groups having the second an·d third :highest percentages were the mining group and the cOijstruction group with 4.3170 and 2.90%, respectively.

of

XIV. During the calendar year 1949, the weekly partial benefit was generally higher in the mining industry group than in other groups and generally lower in the manufacturing group and the wholesale and retail trade group than in other groups.

xv.

Data for the time period January, 1949, to June, 1950, inclusive, indicate that lnore partial unemployment compensation benefit payments were made to persons who were eligible for lthe maximum weekly benefit amount than were made to persons eligible for any other weekly benefit amount.

4

Section I

INTRODUCTION . Since· 1939 all forty-eight s.tates have been paying benefits to unemployed workers under state unemployment compensation systems. Wisconsin, in 1932, was the first state to initiate such a program. A federal sysltem was established in 1935. In o'!der to encourage each state to adopt its. own unemployment compensation system, the federal statute provides tha,t an employer's federal unemployment compensation tax may be reduced up to 90 per cent by the payment of a comparable staJte tax. In -addition, federal law provides for grants for administrative purposes to states which have approved unemployment compensation systems. In all states, benefits are paid to covered wage earners who are totally unemployed, and in all but one state 1 benefits are also paid to eligible partially unemployed work·ers. The amount of the benefit is generally about 50 per cent of the worker's weekly wage, with a given maximum and minimum, and, after a waiting period, is 'paid for a specified nu!mber of weeks or until a specified sum has been paid to the worker. Eleven jurisdictions (Arizona, Connecticut, Maryland, Massachusetts, Michigan, Nevada, North Dakota, O~io, Wyoming, the District of Columbia and Alaska) provide for dependents' allowances in addition to the weekly benefit payable to the unemployed worker. Except in Michigan, the full dependents' allowance which would be paid if the 1

Montana.

5

worker were totally unemployed, is paid in the event that the worker is partially unemployed.' In Michigan, a benefit to a partially unemployed worker eligible for one-half. his weekly benefit amount includes one-half of his dependents' allowance. '

Compensation for Partial U nemplogment Compensation for partial unemployment in the United States has developed more slo~ly than compensation for total unemployment. Although 'benefit payments were being made to unemployed workers in all states by 1939, seven states had made no correspondi~g provision for partial unemployment benefits at that time. T'hree years later, the nu'mber of states with no partial; unemployment benefits had declined to fOUf (New York, New Jersey, Montana and Pennsylv.ania). Pennsylvania established a system of partial unemployment compensation in 1945. Today, only Montana has made no provision for partial unemployment benefits, although it does pay benefi.t~ at the rate for total unemployment to some workers who would receive partial unemployment compensation in other states. ,Special problems arise in connection with cOlnpensation for partial unemployment. Some workers continue to be employed 'by the same employer' but are working less than full time, and some workers have terminated their regular employment and are working part-time for someone else or at odd jobs. The former sitlIation is commonly design'ated as upartial unemployment~' and the latter as uparttotal unemployment." Some workers, such as housewives, students,. the ,p'hysically handicapped and others who do not accept full-time ,paid employlnent, are referred to as par_ tially employed" as contrasted with upartilally unemployed." Parrtially unemployed persons do not have full-time work but u

6

.are workin.g as many hours. ~s 'employment opportunities permit- I~nd are se~king additip~al work. The identIfying ch'aracteristic qf partial unemployment is its jn.voluntary nature. The W age~Loss and Day;.,Base meat Comp'ensation

Sy~tems

of U nemploy~

There are two general systems of unemployment compenstation: !the wage.:.loss system ·and the day-base plan. Both systems are used to compensate Jor total and pa,rtial unemployment. The wage-loss system proyid·es for -weekly payments of computed amounts which approximate tIle difference between earnings and the weekly benefit amount for total unemployment. The day-base plan provides for accumulation· of days of unemployment until. the number of days equivalent to a week of total unemploym'ent has been accumulated, at which time a payment equal to. the weekly total 'unemployment 'benefit is made. With the exception of New York, all states use the wageloss sys'tem. Generally, under this system, the worker who has established his eligibility for p.artial benefits receives his weekly benefit rate for total unemployment less his wages from his partial employment. in. excess of a ~pecified amount. In Michigan, Nebraska and Wisconsin, the. worker receives in benefits 'his weekly benefit amount for total unemployment if his wages that week were less than one-half this amount, or one-half his weekly benefit amount for total unemployment if his wages were one-half or greater. New York uses the day-base plan, under which benefit 1"ates are computed in basically th,e same way as those under the wage-loss syst~m. However, the payments are computed in a different manner. For. purposes of computing the payments, the day-base plan recognizes a seven-day week. Pro7

vided a worker earns less than $24 from his employment during the week, the fourth and succeeding days of unemployment in that week are designated as "effective days." Four effective days are considered a week of full unemployment. The full benefit amount is paid to any covered person who has accumulated four effective days. The first four effective days in the benefit year constitute the waiting 'period. A joint committee of the New 'York Legislature appointed to study the problem of unemployment insurance has recommen;ded a new system elimi,nating the "effective day" concept. 2 In place of the "effecti~e day" method of computation, the committee suggests the substitution of a system similar to that now in use in Pennsylvania and other states. The committee has stated the following reasons for its conclusion: 1. The tenn "effective day" is difficult for claimants to

understand. 2. The use of this concept discourages an unemployed

worker from accepting short-time employment, or 3. Workers are tempted to conceal short-time employment. 2 Report of the Joint Legislative Committee on Unemployment Insu1'ance, Albany, 1950. '

Section II

PENNSYLVANIA: Basic Statutory Pr"ovisions Regardi·ng Unemployment Compensatio·n The Unempl9yment Compensation Law of Pennsylvania was enacted in 1936. The Declaration of P~blic Policy reads in, part a's follows: ulnvoluntary' unemployment and its resulting 'burden of indigency falls with crushing force upon the u~employed woiker, and ultimately upon the Cqmmonwealth and its political subdivisions in the form of poor relief assistance. : . . The 'principle of the accumulation. of financial reserves, the sharing of risks, and the payment of compensation with respect· to uneinp.loyment meets the need of pro~ection against :the hazards of unemployment and 'indigency.3", The Unemployment Compensation Law is a'dministered by the Bureau of Employment and Unemployment Co·mpensation in the 'Department of Labor and Industry. The system of payment and ~ompensation involves contributions by employers to the. Pennsylvania Unemployment Compensation Fund;; deposits of money from this fund in "the Unemploy3 Article I, Section 3 of the Pennsylvania Unemployment Compensation Law; Act NO.1, Second Extraordinary Sessio'n of 1936, December 5, 1936, 19~.7 P. L. 2897. /

9

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mentCompensation Trust FuPd; withdrawals from this latter fund to a compensation adcount; and payments from this account to eligible unemploYfd persons. . In order to be eligible fot compensation, a covered em,ploye must comply with the \following requirements: .

i

(1) Be totally or partially~nemployed.

(2) ;

H~ve received rem\lne*ation· of 'not .less than 30 times

his weekly benefit '!at~ during his' base year (the first I four of the last five c~mpleted calendar quarters immediately preceding hils benefit year). i

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(3)- Must be regi.~tered' fori employment at the Pennsylvania. 'State Employment Service and must continue to report there. : 'I

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(4) Must be a'ble to work alnd be available for work.

(5) Must

app~y

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according .;to the rules of the Bureau and must have ·a waiting period ,0£ one week ,- (the first week in his t~'benefit'ye~r" and for which he does not receive compensation).j , [ I

An employe is ineligible fqr compensation if he fails to apply for suitable work or to iccept suitable work if offered; I if his unemployment is due to leaving work voluntarily without good cause; if his unem~loyment is due to a stoppage of work which exists because ~f a labor dispute, as defined r by the law; if his unemployment is due to his discharge or temporary suspen'sion from wo:rk for willful misconduct connected with the work; or if ~e is receiving unemployment benefits from another state or iund·er federal law. An employe may be competl1sated for total unemployment or partial unemployment. Partial unemployment is recog\

nized for compensation purposes if th'e individual is working less than his customary full time in any week, and at the same time is earning less than his weekly benefit rate. The minimum weekly benefit is $8, which is payable for earned wages of $60 to $212 during th'at quarter of his base year in which h·e received the highest wages. This rate increases by $1 for every $25 increase in wages during the 'highest quarter up to a maximum of $25 per week at earnings of $613 and over. 4 A partially unemployed person is compensated in the amount of the weekly rate of compensation minus remun·eration paid which is in excess of $3. Certain classes of employment are not covered by the Unemployment Compensation Law. Employment, as defined in the law, does not include any agricultural pursuit, domestic service or other ((casual" labor, as well as certain other employmellt categories. 5 An employer is defined as one who «. • • employs any employe in employment subject to this act for some -portion of a day during any calendar year. . . ." Subject to approval by the bureau, an employer who is not subject to the act or who employs persons in classes of employment not covered by the act may' elect to become subject to the law or to include under the provisions of the law persons in classes of employment not covered. 4 If ·the amount lin the fund is less than one and one-half times the highest am.oun.t paid out ,for compensation during .any twelve consecutive months, the maximum may be reduced ito $20. 5 Service in the armed forces; service for the United States; coverage by the unemployment laws of the United States of any other state; service for the state or political subdivision; service performed for a son, daughter, or spouse; for religious or charitable organization; railroad or maritime service; service for a fraternal beneficiary society or a voluntary employees' beneficiary association; service by a student in school; for a foreign government; student nurse; newspaper vendors under 18; or certain services remunerated solely by commissions.

11

Partial U nemptoyment Compensation in Pennsylvania In 1945, cOlnpensation for partial unemployment in Pennsylvania was provided by an amendment to the Unemployment C:ompensation· L'aw which -specified that (Can individual shall be deemed unemployed . . . with respect to any week of less than his full-time work if the remuneration paid or payable to him with respect to such week is less than his weekly benefit rate. . . ." (1945, May 29, P. L. 1145). This provision for the payment of partial unemployment compensation ben·eflts became effective in the week ending January 1, 1946. At this time, the weekly benefit rate ranged. from $8 to $20, and th'e total amount of benefits ranged from nine to twenty times. the weekly benefit rate. The magnitude of unemployment compensation benefit paym,ent~ was chan·ged by the Act of 1947, June 30, P. L. 1186, which increased the maximum total amount of compensation from twenty times the weekly benefit rate to twenty-four times· the weekly ben·efi,t 'rate. By AGt of 1949, May 14, P. L. 1355, the 'maximum weekly benefit rate was increased from $20 to $25. The benefit procedure in Pennsylvania for partial unemployment compensatiol1 closely parallels that for total unemployment compensation. An employe who is fully ~mployed, partially unemployed, or totally unemployed first files an c~Application for Benefits" at his local unemployment cOlnpensation office. In the event that the worker is fully employed, this application serves only to establish the one-year period, beginning, with the day of the application, which will constitute the worker's benefit year. ln the event that the worker is either partially unemployed or totally unemployed, this application establishes not only the benefit year, but also the worker's eligibility for benefitsi and the first day of the worker's one-week wait'·12

Lng 'period. The weekly benefit amount of the worker equals 1/25th of his wages earned during that quarter of his base period in which his earnings were highest and is computed to the nearer dollar, but is to be not less than $8 nor more than $25. When a worker becomes partially unemployed, the employer is required to furnish him with a cCLow Earnings Report" which is used to establish eligibility for partial benefits. If the eniploye has not yet established l1is benefit year through filing an ccApplication for Benefits," he does so at this time. As noted. above, the cCApplication for Benefits" is used to 'establis11 the benefit year and to establish eligibility for benefits, and the cCLow Earnings Report" is used in the determination of the partial benefit. An employe will be eligible for partial benefits if he is employed less than his full-time work week and at the same time earns less than the weekly -benefit amount he would receive were he totally unelTIployed. The amount of weekly benefit that the worket; will receive while partially unemployed is computed by subtracting from fhe weekly benefit amount for total unemployment all wages earned during that week in excess of $3. This computation is always rounded to th'e next higher dollar. If the employe continues to be partially unemployed, he will regularly receive from ·his employer CCLow Earnings Reports" which will ,be used in conn·ection with the computation of his partial benefits for the weeks following tile waiting week. Number: an.d Dolla.r Amount of Benefit Payments fot:' the Period 1946~1950

Table I, page 15, shows the number of benefit payments, th'e dollar amounts of benefit payments and the average ben'efit payment, for both total and p,artial unemployment, from 1946 through the first half of 1950. . 13

--.J

Inspeotion 'of Table I shows that, during the first calendar year of operation (1946), 47,931 'benefit payments were made for 'partial unemployment, which constituted .91 per cent of all ben·efit ·payments. During the first half of 1950, 179,773 benefit payments 'were made for partial unemployment, constituting 4.70 per, cent of all benefit payments during that time period. 6 The dollar amount of benefits for partial unemployment during the year 1946 was $601,846, which constituted .63 per cent of the total dollar alTIOunt of benefits. During the first half of 1950, the dollar amount of benefits for partial unenlployment was $2,129,434, or 2.71 per cent of the total dollar amount of benefits. 'The average payment for partial unemployment during 1946'was $12.56 and for all p'ayments was $18.10. During the first h'alf of 1950, the average payment for partial unemployment was $11.85, while the average for all. payments was $20.57. 6 In the United States as a whole, partial benefits are generally about 5 per cent of all benefits.

14

Table I Benefit Payments, Dollar Amount of Benefit Payments, and Average Benefit Payments for the Years 1946 to 1949, Inclusive, and for the First Half of the Year 1950 All ,Benefit Payments

Year

(1)

Benefit Payments f01' Total Unemployment

(2)

(3)

5,258,675 3,412,011 2,698,596 7,338,733 3,821,752

5,'210,744 3,332,716 2,609,935 7,113,620 3,641,979

Benefit Payments for 'Partial Unemployment

(4)

All Benefit Payments PerCent

Benefit Payments ' for Total Unemployment Per Cent

(5)

Benefit Payments for Partial Unemployment Per Cent

(6)

(7)

99.09% 97.68 96.71 96.93 95.30

.91% 2.32 3.29 3.07 4.70

NUMBER OF BENEFIT PAYMENTS 1946 1947 1948 .. ' 1949 First half, 1950

. . . . .

47,931 79,295 88,661 225,113 179,773

100.00% 100.00 100.00 100.00 100.00

TOTAL DOLLAR AMOUNT OF BENEFIT PAYMENTS 1946 .............•...•.. 1947 . 1948 . 1949 . First half, 1950 .

$95,188,856 57,881,688 46,193,417 140,730,838 78,616,490

$94,587,010 57,073,529 45;298,827 138,207,031 76,487,056

$601,846 808,159 894,590 2,523,807 2,129,434

100.00% 100.00 100.00 100.00 100.00

AVERAGE, BENEFIT PAYMENTS i946 ' . 1947 ...................• 1948 . 1949 . First half, 1950 . SOURCE:

$18.10 16.96 17.12 , 19.18 20.57

Appendix A, Table I.

15

$18.15 17.13 17.36 19.43 21.00

$12.56 10.19 10.09 11.21 11.85

99.37.% 98.60 98.06 98.21 97.29

.63% 1.40 1.94 1.79 2.71

Percentage. Distribution of Pa,rtial U nemplogment Compensation Benefits to M en and Women Table II, below, shows, on a monthly basis, the percentage distribution of the number of partial unemployment COffipensa:tion -benefits between men and women, for the period January, 1949, to June, 1950.

Table II Percentage Distribution of Number of Partial Unemployment Compensation Benefit Payments to Men and Women on a Monthly Basis During 1949 and the First Half of 1950 * Percentage of Partial Unemployment Compensation Benefit Payments Made to: Year

Month

Men

Women

Total

(1)

(2)

(3)

(4)

(5)

21.33% 27.31 38.93 29.66 28.09 34.13 40.0"5 47.87 ~ 50.38 42.52 46.37 37.52

78.67% 72.69 61.07 70.34 71.91 65.87 59.95 52.13 49.62 57.48 53.63 62.48

100.00% 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

51.56 50.75 43.92 56.41 61.35 68.73

100.00 100.00 100.00 100.00 100.00 100.00

1949

January .............. February ................ March .................... April . . . . . . . . . . . . . . . . . . I " " May ......................... June ....................... July ..................... 1\ugust September October .................. November .............. December ............... .........

•

1950

ilia

I

•••••

..........

January .................. February March April ........................ May ......................... June ...................... ...........

oil

...............

"* Based on

48.44 49.25 56.08 43.59 38.65 31.27

......

alii.

.

~am'ple

data, see Appendix B.

l7

• - '.,1

_

~

... _ . . . .

......

..

__ 0•• a"_

...... _.

_ _ "-'"

Inspection 6f Table II indicates that WOlnen usually receive a greater number of benefit payments for partial unemploytnent than do men. The table shows the lowest percentage of payments to men, 21.33 per cent in January, 1949, and the highest percentage to men, 56.08 per cent in M,arch, 1950. T'he corresponding high percentage for women, in January, 1949, was 78.67 per cent, and the low, in MarGh, 1950, was 43.92 per cent.

Percentage Distribution of Partial. Unemployment Com.pensation Benefit Payments Among Major: Industry Groups Th'e percentage distribution of the number of partial unemployment compensation benefit payments in tllree-month time periods from January through March, 1949, to April through June, 1950, among major industry groups are shown in Table III. Examin.ation of the table shows that in each of the six three-montI1 'periods, the largest number of benefits were paid to employes of the manufacturing industry. Wholesale and retail trade employe$ ranked. second in five of the six time periods. An increase in percentade from one time period to the next shows that tl~e major industry group is increasing in number of payments more rapidly than the other groups or is decreasing less rapidly than th'e remaining groups. A decreasing 'percentage from one time period to the next may show ~ither that the group is decreasing more rapidly than the other groups or is increasing less rapidly than the other groups. Tables IV and V (pages 20 and 21) show the percentage distribution of the number of partial unemployment benefit payments to men and women ,by major industry group, in I

18

Table III Percentage Distribution of Number of Partial Unemployment Compensation Benefit Payments in Three-Month Periods from January Through March, 1949, to April Through June, 1950, in Major Industry Groups *

Major Industry Group

(1) ~

\0

Mining ...................... Construction ................... Manufacturing ................ Transportation, Communications, and Public Utilities .......... Wholesale and Retail Trade .... Services .......................... Other Industries 1 ............

TOTAL NUMBER OF BENEFIT PAYMENTS ...........

* Based 1

Janua1'YMarch

AprilJtme

JttlySeptember

OctoberDecembe1'

JanuaryMa1'ch

AprilJune

1949

1949

1949

1949

1950

1950

(2)

(3)

(4)

(5)

(6)

(7)

3.75% 2.43 80.39

3.92% 3.50 80.37

13.18% 2.72 69.11

2.05% 2.21 77.95

1.98% 6.59 74.63

1.95 6.74 2.83 1.91

1.56 7.60 1.56 1.49

2.09 10.53 .94 1.43

1.86 10.68 3.76 1.49

1.54 11.22 2.74 1.30

1.20 9.00 2.01 .70

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

48,876

47,123

60,925

68,189

97,317

82,456

5.49% 2.28 79.32

on sample data, see Appendix B. Other Industries include: Agriculture, Finance, Insurance, Real Estate, and Establishments not elsewhere classified.

Table IV Percentage Distr,ibution of Number of Partial Unemployment Compensation Benefit Payments to Men in Three~Month Periods from January Through March, 1949, to April Through June, 1950, in Major Industry Groups * -~--""----~--- ------~--~----_- __Janu.al'y~---

Major Industry Group

(1)

March 1949

__4P!'i1julyOctoberjanuaryApriljune----- -----fiptember" ----- -Decemb-e,;--- ----Ma-rch-------------june 1949 1949 1949 1950 1950 (3)

(4)

(5)

13.12% 8.52 57.07

12.73% 11.37 59.26

27.85% 5.74 50.56

4.93% 5.15 69.66

3.88% 12.76 64.70

14.97% 6.06 58.28

435 6.14 4.56 6.24

3.20 7,85 2.12 3.47

4.00 8.19 1.25 2.41

3.54 10.98 5.16 .58

2.79 11.99 1.93 1.95

2.30 13.31 3.89 1.19

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

(2)

(6)

(7)

tv

0

¥ining ...................... Construction ................. Manufacturing ............... Transportation, Communications, and Public Utilities ......... Wholesale and Retail Trade .... Services ..................... Other Industries 1 . . • • • . . • • . . • •

* Based 1

Other

on sample data, see Appendix B. include: Agriculture, Finance, Insurance, ,Real Estate, and Establishments not elsewhere classified.

Industr~es

Table V Percentage Distribution of Number of Partial Unemployment Compensation Benefit Pay... ments to Women in Three..-Month Periods from January Through March, 1949, to April Through June, 1950, in Major Industry Groups *

Major Industry G1'OUP

(1)

JanuaryMarch

AprilJune

JulySeptember

OctoberDecemb-er

1949

1949

1949

(2)

(3)

1949

JanuaryMarch 19.50

AprilJune 19.50

(4)

(;)

(6)

(7)

8;.77%

.12% 83.85

.14% 85.01 .24 10.41 3.59 .61

.56 6.51 .93 .41

100.00%

100.00%

IV 1-"

Mining ...................... Construction .................. Manufacturing .............................. Transportation, Communications, and Public Utilities .................. Wholesale and Retail Trade .; .. Services ........................................ Other Industries 1 . . . . . . . . . • . . .

* Based ,1

a." ..

89.71%

89.76%

.99 6.98 2.14 .18

.82 7.49 1.32 .61

.39 12.63 .66

.5;

.66 10.47 2.77 2.13

100.00%

100.00%

100.00%

100.00%

.09% 91.;0

on sample data, see Appendix B. Other Industries include: Agriculture, Finance, Insurance, Real Estate, and Establishments not elsewhere c1assifjed.

three-month ti,me periods from January through March, 1949, to April through- June, 1950.

Relationship Between Number of Employes and Nttm~ bet' of Employes Receiving Partial Bene,fit P,ayments, and Number: of Benefit Payments7 by Major Industry Groups I

The distribution for major industry groups and for selected individual industries of average number of employes covered under the: Pennsylvania Unemployment Compensation Law, the number of employes receiving partial unemployment compensation benefits, the number of partial unemployment cOfi1pensation benefit payn1ents, the number of employes receiving partial benefits as a per cent of the number of covered employes, and the number of partial payments per partially unemployed work-er during the caferrdar year 1949 are shown in Table VI. Inspection Qf Table VI shows that the manufacturing group had the highest percentage of persons receiving partial unemployment cOlnpensation benefit payments, while the mining gr,oup and construction group were second and third, respectively. The manufacturing group was heavily weighted by the apparel and other finery products industry, in which th'e 'percentage of persons receiving partial unemployment compensation .benefits was 22.67, and by the textile mill products industry in which the percentage was 11.11. The number of partial unemployment benefit payments. per person was highest in the wholesale and retail trad·e industry group and was second highest in the composite group of all other industries. In the industry categories included· in the table, 3.1 p.aYlnents -per beneficiary are shown in the retail general merchandise industry, and 2.2 payments per beneficiary ·are s'hown for the apparel and other finery products industry 'and for the primary metals products industry. 22

Table VI Distribution for Major Industry Groups and for Selected Individual Industries of Average Number of Employes Covered Under the Pennsylvania Unemployment Compensation Law, Number of 'Employes Receiving Partial Unemployment Compensation Benefits, Number of Partial Unemployment Compensation Benefit Payments t Number of Employes Receiv... ing Partial Benefits as a Per Cent of Employment, and Number of Partial Payments Per Partially Unemployed Worker During the Calendar Year 1949 *

Average Number of Covered Employes

Industries

Number of Employes Receiving Partial Unemployment Compensation Benefits

Number of Partial Unemployment Compensation Benefit Payments

Number of Employes Receiving Partial Benefits as a Per Cent of Employment

Number of Partial Payments Per Partially Unemployed Worker During

1949 (1)

(2)

Total-All Industries ............... Major Industry Groups: Mining .................... Construction ................ Manufacturing ........................... Wholesale & Retail Trade .... Services .................... All Other Major Industry Groups Industries: Bituminous Mining .......... Food & Kindred Products .... Textile Mill Products ........ Apparel & Other Finery, Prod· ucts ..................... Stone, Clay & Glass Products . Primary Metal Products ...... Fabricated Metals ...................... Machinery ................................. Electrical Machinery, Equipment & Supplies ............. ;. Transportation Equipment ........ Retail General Merchandise ...

* Based

(3)

(4)

2,957,503

113,731

225,120

3.85%

2.0

184,004 1,416,515 663,161 238,724 306,956

7,935 4,295 87,489 7,971 3,315 2,726

13,330 5,850 172,480 20,550 6,550 6,360

4.31 2.90 6.18 1;20 1.39 .89

1.7 1.4 2.0 2.6 2.0 2.3

91,650 101,700 141,836

5,115 2;820 15,758

9,230 5,760 25,280

5.58 2.77 11.11

1.8 2.0 1.6

153,672 72,930 258,509 101,943 112,242

34,840 4,163 5,803 4,296 2,853

75,280 7,160 12,840 8,330 5,960

22.67 5.71 2.24 4.21 2.54

2.2 1.7 2.2 1.9 2.0

98,790 55,325 111,761

4,099 2,361 1,574

5,660 4,250 4,850

4.15 4.27 1.41

1.4 1.8 3.1

148,14~

on sample data, see Appendix B.

23

(5)

(6)

Percentage Distribution, by Industry Groups, of Partial Benefit Payments by Dollar: Amounts In Table VII, page 27, ·the percentage distribution for 1najor industry groups .and for selected industries of the number of partial un~mployment compensation benefit weekly payments by the dollar amounts of payments, for persons filing claims under the benefit 'provisions of the Act of 1949, May 14, P. L. 1355, during the second half of the calendar year 1949, are shown. Inspection of Table VII indicates that the distribution of th'e number of partial benefit payments, by dollar amounts, varies from industry to industry. For example, in the mining industry more clainlants received 'ben·efit payments of $14' or $15, whereas in the construction industry the most frequently occurring benefit payments were $18 or $19.

Distribution of Weekly Earnings and Benefit Amounts The dollar amount of a partial unemployment benefit payment when taken in conjunction with the weekly benefit amount for total unemployment reflects the level at which the worker is partially unemployed. Since the weekly'benefit amount for total un,employment is determined as approximately 1/25th of the worker's high quarter wages (except at the minimum, $8, and the maximum, $25, under existing law) and since in order to qualify for partial unemployment benefits a worker 'must be earning less than his weekly benefit amount for total unemployment (disregarding $3 of earnings) and must be employed less th'an his regular work week, th'e worker's earnings during weeks of :partial unemployment can be estimated and the degree of his underemployment can be approximated. T'hese 'estimates generally apply only when the worker is earning less t11an h.alf his 25

customary wage because the weekly benefit amount which determines th'e existence of compensable partial unemployment is approximately one-half of the cus1tomary weekly wage. The percen~age distributions of the number of partial unemployment compensation benefit payments by estimated weekly earnings and -by both -average weekly wage during highest quarter of base period ,and weekly be11efit amount for total unemployment for persons whose claims were filed between July, 1949, and June, 1950, inclusive, under the Act of 1949, May 14, P. L. 1355, are show11 in Table VIII, page 29. Inspection of Table VIII shows that the largest nU1mber of payments (43.77%) was made to persons whose weekly benefit amount was $25 and whose estimated average weekly wage was $47.20 ~r greater. The highest percentage of pavtial unemployment compensation benefit payments (14.0770) was made to persons whose estimated earnings were $10 but less than $12 per week.

26

Table VII Percentage Distributions for Major Industry Groups and for Selected Industries of the Number of Partial Unemployment Compensation Benefit Weekly Payments by the Dollar Amounts of Payments During the Second Half of the Calendar :Year 1949 for Persons Filing Claims Under the Benefit Provisions of the Act of 1949, May 14, P. L. 1"355 * Dollar Amounts

0/

Weekly Benefit Payments 22 and

Industries

Total

4-5

6-7

8-9

10-11

12-13

14-15

16-17

18-19

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

10)

Total ......................... 100.0% 12.6% Major Industry Groups: Mining, ...................... 100.0 Construction ................. 100.0 Manufacturing ................ 100.0 Transportation, C9mmunications, &. Utilities ................. 100.0 Wholesale and Retail Trade .... 100.0 Services ...................... 100.0 All Other .................... 100.0 Industries: Bituminous Mining ........... 100.0% Food and Kindred Products .... 100.0 Textile Mill Products ......... 100.0 Apparel & Other Finery Products 100.0 Stone, Clay & Glass Products ... 100.0 Primary Metal Products ........ 100.0 Fabricated Metals ............. 100.0 Nonelectrical Machinery ....... 100.0 Electrical Machinery, Equipment & Supplies ................•.. 100.0 Transportation EquipJP.ent ...... 100.0 Retail General Merchandise ....• 100.0

* Based

on sample data, see Appendix B.

27

9.9% 12.0% 10.7% 13.2%

9.5% 10.9% 11.5%

20-21

over

(11)

(12)

4.5%

5.2%

14.4 13.5 10.7

6.2 10.8 10.0

5.5 2.8 13.0

3.4 8.1 10.3

19.2 5.4 14.0

23.9 5.4 8.2

14.4 16.2 11.3

4.8 18.9 12.5

2.7 8.1 4.8

5.5 10.8 5.2

6.1 19.5 28.0 5.3

3.0 15.7 7.0 5.3

6.1 12.6 19.3 10.5

9.1 17.0 7.0 57.8

18.2 6.3 7.0 10.5

6.1 8.8 5.3

12.1 8.2 1.8

15.1 6.3 19.3 5.3

9.1 3.1 1.8 5.3

15.1 2.5 3.5

7.2% 6.7 10.2 12.7 10.9 7.2 12.0 11.7

.9% 3.6% .9% 26.7 13.3 13.3 14.8 7.8 9.4 11.6 16.5 13.4 20.0 1.8 7.3 8.1 8.1 9.0 16.0 16.0 10.0 5.0 1.7

5.5% 6.7 4.7 8.5 18.1 24.3 14.0 23.3

3.6% 6.7 3.9 4.4 7.3 2.8 2.0 3.3

7.2% 3.3 4.7 2.4 12.7 12.6 4.0 3.3

2.1 3.0 20.0

4.3 6.1 20.0

6.4 6.1 17.8

6.4 9.1 22.2

24.3% 30.6% 16.2% 10.0 13.3 28.9 7.8 7.8 7.8 13.7 9.0 5.5 9.1 7.3 16.2 6.3 5.4 22.0 4.0 10.0 5.0 11.7 25.0 85 12.1 8.9

14.9 9.1 8.9

10.6 18.2 2.2

8.5 12.1

31.9 12.1 /

....

6.4 12.1

Table VIII Percentage Distributions of Number of Partial Unemployment Compensation Benefit Payments by Estimated Weekly Earnings and by Both Average Weekly Wage During Highest. Quarter of Base Period and Weekly BenefitI Amount for Total Unemployment for Persons Whose Claims W~re Filed Between July, 1949, and June, 1950, Inclusive, Under the Act of 1949, May 14, P. L. 1355 * Estimated Weekly Average Benefit, lPeekly Wage Amount During for Total Highest QuarUnder ter of Base Unem$4-6 $4 ployment Period (1)

(2)

(3)

$8 9 10 11 12 13 14 15 16 17 18

$ 4.6 to $16.3

a a a a

19 20 21 22 23 24 25

16.4 to 18.2 18.3 ,to 20.1 20.2 to 22.1 22.2 ,to 24.0 24.1 to 25.9 26.0 to 27.8 27.9 to 29.7 29.8 to' 31.7 31.8 to 33.6 33.7 to 35.5 35.6 to 37.4 37.5 to 39.4 39.5 to 41.3 41.4 to 43.2 43.3 to 45.1 45.2 to 47.1 47.2 and over

(4)

Estimated Weekly Earnings

$6-8 $8-10

(5)

(6)

$10-12

(7)

$12-14 $14-16 $16-18 $18-20 $20-22 $22-24 $24-25 (8)

(9)

(10)

(11)

(1,2)

(13)

(14)

Total (15)

.38% .19% .19% .42 .24 .75 .09% .44 .44 1.37 .49 .38 1.60 .48 .65 .09% 4.25 .67 1.44 .05% .91 1.18 ,45 .28 .44 .28% 1.89 .07 .37 .44 .62 2.71 .67 .02 .63 .33 .88 .46 3.18 .56 .02 .58 .49 .19% 1:27 1.16 .46 4.59 .72 .47 .02 .49 a ,42 ,47 .58 .78 .65 .72 .37% 3.99 4.60 .58 .67 .69 .72 .55 .05 .97 .37 a .51 .28 .25 .51 4.52 .85 .77 .72 .63% .44 .84 .42 .60 .60 .63 4.25 .35 .35 .02 .81 4.81 .51 .70 .12% .44 .47 .67 .70 .05 .34 .28 .26 .28 .54 .74 .32 .51 .02 3.83 .55 .33 a ,44 .60 .56 .40 .58 .58 .55 5.38 .91 .53 .23% ,46 ,47 .05 .21 .47 .44 .18 4.13 .69 .49 .30 .37 4.46 .51 2.11 2.74 5.02 3.85 3.60 3.83 1.39% 43.77 3.95 5.58 6.73

-----TOTAL .. .88

9.44 13.39

'" Based on sample data, see Appendix B. Less than one one-hundredth.

a

29

13.54

14.07

12.83

10Ao

7.85

7.11

4.86

4.24

1.39

100.00

Section III

A COMPARISON 9F PARTIAL UNEMPLOYMENT BENEFITS AND PROCEDURES IN SIXTEEN SELECTED STATE·S Basic Statutory Provisions pensation in Selected States

fcJt'

Unemployment

Com~

The ffi,?st important factors which determine the magnitude and duration of benefit payments for partial unemployment are the magnitude ·and duration of benefit payments for total unemployment. As regards compensation for total unemployment, the wage requirements, the statutory fraction on the basis of which benefits are. calculated and the weekly minimum and maximum 'benefits for sixteen selected states are shown in Table IX,7 page -32. 7 These states were selected on the basis of: ( 1) _diversity of legal provisions relating to unemployment compensation, and (2), industrial competition. The states are: Ala:bama, California, Connecticut, Illinois, Kenhlcky, Maryland, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvan~a, Rhode Island, Texas and West Virginia. See pp. 264265 of' •'First Report on .the Tax and Financial Problems of the Commonwealth of Pennsylvania to the §neral Assembly," Joint State Government Commission of the Genet;al Assembly of Pennsylvania, January, 1941.

Table IX Wage Requirements, Methods of Computing Weekly Benefits and Spread of Weekly Benefits in SixteenSelecteCl -States * Method of Computing the Weekly Benefit Amount

State

Wage Requirements ilz Base Period a for Eligibility for Unemploytlle1zt Compensati01z

Minimum and Maximum Weekly Benefit Amounts

(1)

(2)

Alabama

Thirty times the weekly benefit amount (at the minimum benefit, this is $120) with $75.01 or more in one quarter.

1/26th of high quarter wages

$ 4-$20

California

Not under $300, and must be the lesser of: 1. Base period wages equal to 1% times the high quarter wages or 2. Thirty times the weekly benefit amount. (At the minimum benefit, this is $300.)

b

$10-$25

Connecticut

$240 and wages in at least two quarters

1/26th of high quarter wages

$ 8-$24

Illinois

$300

1/20th of high quarter wages

$10-$25

(4)

\JJ \JJ

Kentucky

$300

Maryland

b

$ 7-$20

Thirty times the weekly benefit amount (at the minimum benefit, this is $180) including $156 in high quarter.

1/26th of high quarter wages

$ 6-$25

Massachusetts

$150

1/20th of high quarter wages

$ 6-$25

Michigan

Fourteen weeks of employment at $8.01 or more ($112.14)

b

$ 6-$24

New Jersey

Thirty times the weekly benefit amount. the minimum benefit, this is $270.)

(At

1/22nd of high quarter wages

$ 9-$22

New York

Thirty times the weekly benefit amount (At the minimum benefit, this is $300) including $100 in high quarter.

1/23rd of high quarter wages

$10-$26

* SOURCE: Bureau of Employment Security, U. S. Department of Labor, "Handbook on State Unemployment Insurance Laws," January 1, 1950. a The base period is, in each state, a period of one year, defined variously as the first four of the last five or six quarters immediately preceding the benefit year, or the calendar year, next to the last calendar year or one year period immediately preced. ing the benefit year. . b Varying fractions are used at different wage levels.

Table IX (Continued)

U.)

State

Wage Requirements in Base Period a. t01' Eligibility for Unemployment Compensation

Method of Computing the Weekly Benefit Amount

Minimum and Maximum Weekly Benefit Amounts

(1)

(2)

(3)

(4)

North Carolina

$200

b

$ 6-$25

Ohio

$240

b

$10-$25

Pennsylvania

Thirty times the. weekly benefit amount. the minimum benefit, this is $240.)

1/25th of high quarter wages

$ 8-$25

Rhode Island

$100

1/20th of high quarter wages

$10-$25

Texas

$200 and wages in at least two quarters

1/26th of high quarter wages

$ 7-$20

West Virginia

$300

b

$ 8-$25

~

(At

a The base period is, in each state, a period of one year, defined variously as the first four of the last five or six quarters immediately preceding .the benefit year, or the calendar year, next to the last calendar y"ear or one year period immediately preceding the benefit year. b Varying fractions are used at different wage levels.

Table X Principal Provisions for Partial Unemployment Benefits in Selected States

In order to compute partial benefits for a covered wage earner, the following supplemental information is required:

(1) definition of partial unemployment in terms of earnings;

(2) amount of earnings disregarded when computing benefits for pafitial unemployment; and (3) statutory provisions regarding rounding of benefit payments as computed. Table X shows the requirements of the sixteen selected states as well as provisions for dependents' allowances, if any.

35

State

Partially Unemployed if Eamings are less than

(1)

(2)

Pa. Ala. Cal. Conn. Ill. Ky. Md. Mass. Mich. N. J.

N. Y. N.C. Ohio

R.

I.

Texas

W. Va.

(3)

Weekly benefit amount

Weekly Weekly Weekly Weekly

benefit benefit benefit benefit

Amount of Earnings Disregarded in Computing Benefit

+

amount amount amount a amount

$3.

$3.00 2.00 3.00 3.00 2.00 1/5 of earnings 2.00 None d

Weekly benefit amount $24.01 b Weekly benefit amount Weekly benefit amount Weekly benefit ·amount subsidiary earnings C Weekly benefit amount subsidiary earnings Weekly benefit amount

+ $3. + $2. a + $3. in + $3. in + $6.

3.00 None b 2.00 2.00

*

Weekly Benefit Rounded to

Other P,'ovisions

(4)

(5)

Higher dollar Nearer dollar Higher dollar

Nearer dollar Higher dollar e

Dependents' allowances f Reduction for unavailability g Less than 24 hours weekly h Dependents' allowances f Dependents' allowances f Dependents' allowances f

Higher dollar b

Nearer 50c Higher dollar

Benefit for 4 "effective days" -Less than 60% full-time h Dependents' allowances f

b

3.00 C 3.00 6.00

a There is also a time limitation. See Column 5. b Partial unemployment is counted for each week in which claimant earns $24 or less. The count is by "effective days," defined as the 4th or subsequent day of total unemployment in such a week, and is cumulative. No more than 4 "effective days" may be counted for any week, and a week's benefit is paid for each accumulation of 4 "effective days." C All earnings from the regular employer must be counted. d The full weekly benefit is paid if earnings are less than :Yz weekly benefit. e Benefits are according to a schedule in $1.00 intervals. f Dependents' allowances are paid at the same rate as for total unemployment in Conn., Md., Mass., and Ohio. In Mich. a worker eligible for Vz his weekly benefit amount also receives Vz his dependents' allowances. g Reduction amounts to 'l3 of the weekly benefit amount for each day. h Claimant is eligible for partial unemployment benefits only when time worked has not exceeded the stated limits, (in Kentucky, 24 hours weekly) and (in North Carolina 60% of a full-time work-week). * SOURCE: Bureau of Employment Security, U. S. Department of Labor, "Handbook on State Unemployment Insurance Laws," January 1, 1950.

Computation of Partial Unemployment Co'mpensation Bene.fits Under tbe Statutory Provisions of Sixteen Selected States The benefit provisions of Ithe sixteen selected states (including Pennsylvania) are compared at ten levels of high quarter earnings and base year earnings. These high quarter earnings, together with the base year wages on the basis of which compensation computations have been mad~, are shown below. High Quarter Wages

/"

Base Year Wages

$60 185 230 330 370 450 525 575 725 800

$240 275 450 1,150 1,250 1,550 1,850 1,950 2,550 ·3,000

In connection with the above wage data, it should be noted that, during recent months, ~bout one-fourth of th'e applicants for unemployment compensation ben·efits in Pennsylvania showed high quarter wages of $800 land base year wages of $3,000. Again, during recent months, about one-half of the applicants had high quartrr wages greater than $525 and base year wages greater than $1,850. In order to standardize calcul3Jtions of benefits for workers etnployed one day a week, two days a week and three days a week, certain assumptions regarding the worker and his work and wage pattern were made as follows: 1. He "vas employed part-titne by his regular employer. 2. He had no dependents. 37

3. He had previously fulfilled waiting 'period requirements. 4. The full-time work week was forty hours subdivided evenly among five days. 5. Hourly and daily wages were determined from the high quarter earnings.

The pa.vtial unemploYlnent benefits payable in the sixteen selected states for a worker who is employed one day a week, two days a week and three days a week, with daily earnings of $12, high quarter earnings of $800 and base year wages of $3,000, are shown in Table XI, page 39. Examin~tion

of Table XI shows that' as regards a worker who is employed one day per week, partial benefits paid in Pennsylvania ($16) 'are exceeded only 'by the p·artial benefits payable in the states of West Virginia ($19) and New York ($20). Again, if a worker is employed two days a wee:k, the weekly benefit rate in Pennsylvania is exceeded only by the rates of New York and West Virginia. In Table XII, page 40, weekly benefit paymenrts and duration of ·benefi1ts are shown for ·a partially unemployed claimant who has daily earnings of $8, with $525 in high quarter earnings ·and $1,850 in base year earnings. It may be noted that when a worker is employed one day or two days a week, nine states pay b.enefits which are higher than ,those 'paid in Pennsylvania. These nine states are: California, Illinois, Massachusetts, Michig,an, New Jersey, New York, Ohio, Rhode, Island ,and West Virginia. 'the weekly rates of partial benefits in the sixteen selected states for a worker at each of the eight qther wage levels are presented in Table XIII (see page 41). 38

Table XI Weekly Partial Unemployment Benefits and Total Benefit Amount of a Worker Earning $12 Daily, with $800 in High Quarter Earnings and $3,000 in Base Year Earnings, in Sixteen Selected States Partial Weekly Benefit Rate Is Employed

if

Worker Total Benefit

State 1 Day

2 Days

Week

3 Days Week

Amount

lJ7eek (1)

(2)

.(3 )

(4)

(5)

Alabama ........... California ................ Connecticut Illinois .. ,. ..... " .. ,. ... Kentucky ............ Maryland .............. Massachusetts ......... Michigan ................. New Jersey ............. New york ......... North Carolina Ohio

$10.00 16.00 15.00 15.00 10.00 15.00 13.00 12.00 13.00 20.00 15.00 15.00

PennsyIvania ............. Rhode Island ....... Texas ...................... West Virginia ......

...........

........

..

"

..........

It

III

II

••••

$4.00 3.00 3.00

$400.00 650.00 630~00

1.00 13.00 3.00 3.00

650.00 440.00 650.00 575.00 480.00 572.00 676.00 500.00 650.00

16.00

4.00

600.00

13.00 11.00 19.00

1.00

650.00 480.00 575.00

3.00 1.00

7.00

-39

Table XII Weekly Partial Unemployment Benefits and Total Benefit Amount of a Worker Earning. $8 Daily, with $525 in High Quarter ~Earnings, and $1,850 in Base Eat:nings, in Sixteen Selected States Partial Weekly Benefit Rate Is Employed

if

Worker

State 1 Day

2 Days

Week

Week

3 Days' Week

(1)

(2)

(3)

(4)

Alabama ........... California ............... Connecticut ......... Illinois Kentucky ................ Maryland .............. Massachusetts ....... Michigan ............... New Jersey ........ Ne~ york ......... North Carolina .......... Ohio ..............

$14.00 18.00 15.00 19.00 14.00 14.00 17.00 23.00 17.00 17.00 13.50 17.00

$~.OO

..........

16.00

8.00

Rhode Island ....... Texas ................. West Virginia ......

17.00 15.00 18.00

9.00 7.00 10.00

..............

Pennsylvania

I

...

10.00 7.00 11.00 7.00 6.00 9.00 11.50 9.00 12.00 5.50 9.00

40

$3.00

1.00 1.00 6.00

Total Benefit Am01Jnt

(5) $400.00 598.00 470.00 650.00 440.00 462.00 555.00 460.00 572.00 598.00 390.00 598.00 504.00

1.00 2.00

494.00 370.00 460.00

Table XIII Weekly Rates of Partial Benefits at Selected Earning Levels as Calculated for Sixteen Sel~cted States, Weekly Benefit Rates at Selected Levels with Given Assumptions of Earnings and of Days of Empfoyment Per Week !

Daily Earnings . High Quarter Earnings .. Base Year Wages .....•.

State

$3.20 $60 $240

$3.20

Days Employed Per Week:

123

Days Employed Per Week: 1 2 3

123

123

(2)

(3)

(4)

(5)

(1) Abbama

.

California

.

ConnectiCut

.

Illinois

.

$5.00

$4.80 $330 $1,150

$5.60 $370 $1,250

Days EmPloyed Per Week:

Days Employed Per Week:

Days Employed Per Week:

$185 $275

$6.00

$8.00

$3.60 $230 $450

$2.00

8.00

$3.00

5.00

$2.00

$7.00

$4.00

$10.00

$5.00

12.00

8.00

$5.00

16.00

11.00'

9.00

5.00

2.00

12.00

11.00

7.00

4.00

15.00

)$6.80

$8.80

1$450

$575

:$1,550

$1,950

$10. $7~

$2,5

123

Daj.s Employed ~er Week: 1 2 3

Days Employed Per Week: 1 2 3

(6)

(7)

(8)

$12~00: $5.00

$10.00

$5.00

$6.00

17.00

11.00

$6.00

7.00

2.00

12.00

6.00

1.00

15.00 ';

10.00

5.00

16.00

10.00

5.00

Days En; PerU? 1

~

(9

$13.00

$4.00

$11.00

11.00

,$4.00

19.00

10.00

18.00

$7. 1

8.00

1.00

17.00

8.00

17.00

6.1

19.00 ,I 12.00

5.00

19.009.00

17.00

6,(

7.00

13.00

6.00

1LOO

13.00'

6.00

15.00

6.00

16.00

5.1

18.00

I

1:

Kentucky

6~00

.

3.00,

12.00

8.00

13.00

8.00

13.00: I

..

Maryland

.

Massachusetts

.

Michigan New Jersey

6.00

3.00

7.00

4.00

.

9.00.

4.50

.

9.00

6.00

3.00

1.00

7.00

4.00

9.00

5.00

11.00

10.00

5.00

10.00

5.00

2.00

13.00

8.00

3.00

14.00

8.00

3.00

17.00

10.00

3.00

17.00

8.00

15.00

4.1

5.50

5'.50

16.00

8.00

8.00

18.00

9.00

9.00

21.00

10.50

10.50

24.00

12.00

24.00

12.1

11.00

7.00

4.00

14.00

9.00

4.00

15.00

9.00

4.00

18.00

11.00

4.00

17.00

8.{)0

~5.00

4.1

8.00

5.00

3.00

11.00

7.00

4.00

12.00

8.00

4.00

15.00' 10.00

5.00

19.00

13.00

20.00

13.1

8.00

4.50

12.00

7.50

12.50

7.00

6.00

13.50

5.00

16.00

5.:

12.00

8.00

14.00

9.00

14.00

8.00

9.00

18.00

9.00

17.00

6J

8.00

18.00

9.00

18.00

7.1

17.00

8.00

15.00

4J

15.00

6.00

13.00

2.1

19.00

10.00

21.00

10'